IMF to review Pakistan’s request of over $1bn loan in key meeting today

ISLAMABAD: The International Monetary Fund (IMF) will review Pakistan’s request for more than $1 billion under its Resilience and Sustainability Facility (RSF), as part of a key meeting scheduled for today. The discussions will also determine whether Pakistan qualifies for the next tranche of funding under a separate $7 billion programme. 

The meeting is focused on the first review of Pakistan’s Extended Fund Facility (EFF), under which Islamabad is seeking access to around $1 billion, or SDR 760 million. If approved, this would raise total disbursements under the EFF to about $2 billion. 

In parallel, Pakistan’s request for a $1.3 billion loan under the RSF will be considered. The facility is designed to support long-term climate adaptation and resilience, and Pakistan aims to utilise these funds over the next 28 months. 

Talks between the IMF and Pakistan, led by IMF mission chief Nathan Porter, took place from February 24 to March 14 in Karachi and Islamabad, followed by virtual consultations. These discussions evaluated Pakistan’s progress under both the EFF and RSF frameworks. 

A staff-level agreement was reached in March, outlining a reform package backed by both federal and provincial governments. The IMF has said the programme builds on gains made over the past year, including stabilising the economy, narrowing the fiscal deficit, rebuilding foreign exchange reserves, and addressing structural issues to encourage private-sector growth. 

The loan requests come at a time when Pakistan is facing renewed financial pressures. The government recently confirmed suffering major economic losses following India’s Operation Sindoor and a sharp downturn in the stock market. 

Islamabad has also reached out to other global partners for additional financial help. 

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